Will This Upgrade Help CBS (CBS) Today? (Update)

Update (9:45 a.m.): Updated with Friday market open information.

NEW YORK (TheStreet) -- BMO Capital raised its target price on CBS  (CBS) to $70, raised its estimates and set an "outperform" rating. The firm noted that the company is buying back more stock.

The stock was falling 0.59% to $64.23 shortly after the market opened on Friday.

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Separately, TheStreet Ratings team rates CBS CORP as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate CBS CORP (CBS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • CBS's revenue growth has slightly outpaced the industry average of 3.1%. Since the same quarter one year prior, revenues rose by 11.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 28.81% and other important driving factors, this stock has surged by 43.61% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CBS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CBS CORP has improved earnings per share by 28.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CBS CORP increased its bottom line by earning $2.48 versus $1.90 in the prior year. This year, the market expects an improvement in earnings ($3.01 versus $2.48).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Media industry average. The net income increased by 26.3% when compared to the same quarter one year prior, rising from $391.00 million to $494.00 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Media industry and the overall market, CBS CORP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.

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